TIDMMKA
RNS Number : 4718Z
Mkango Resources Limited
16 May 2023
MKANGO RESOURCES LTD. COTEC HOLDINGS CORP.
550 Burrard Street 755 Burrard Street
Suite 2900 Suite 428
Vancouver Vancouver
BC V6C 0A3 V6Z 1X
Canada Canada
MAGINITO TO ACQUIRE PIONEERING RARE EARTH MAGNET RECYCLER
HYPROMAG
HIGHLIGHTS:
-- Maginito (Mkango 90%; CoTec 10%) to increase ownership in
HyProMag from 42% to 100% for GBP1 million (C$1.69 million) in cash
and GBP1 million (C$1.69 million) in Mkango shares, and a further
GBP3 million (C$5.07 million) payable in four tranches of Mkango
common shares subject to production and other milestones in the UK,
Germany and US
-- Cash component to be funded from the recent GBP1.5 million
(C$2.54 million) investment by CoTec into Maginito as announced on
16 March 2023
-- Maginito to hold a 100% interest in HyProMag and 90% interest
in HyProMag GmbH, post-acquisition and conversion of previously
announced convertible loan, respectively
-- Targeting first production from the UK in 2023 and Germany in
2024, with parallel technology roll-out into the US
-- Major competitive advantages in rare earths magnet recycling
sector, underpinned by approximately US$100m (C$135m) of research
and development ("R&D") expenditure at the University of
Birmingham ("UoB") and with associated project partners:
-- Access to highly energy efficient, patented Hydrogen
Processing of Magnet Scrap ("HPMS") technology
-- Ability to manufacture rare earth magnets with significantly
reduced carbon footprint
-- Maginito and CoTec have launched the roll-out of HPMS into
the US:
-- Evaluating the development of recycling, chemical processing,
alloy and magnet manufacturing
-- Scoping studies and site selection underway ahead of
feasibility studies
-- CoTec and Maginito to form 50/50 joint venture for US
developments, with CoTec to fund feasibility study and project
development costs
-- Ongoing discussions with US Government, potential customers
and recycling partners
London / Vancouver: May 16, 2023 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
that it has entered into an agreement to increase its ownership in
HyProMag Limited ("HyProMag") from 42% to 100% for a cash and share
consideration (the "Transaction"). The Transaction is conditional
upon the approval of the TSX Venture Exchange and approval pursuant
to the UK's National Security and Investment (NSI) Act. Approval of
the latter is expected no later than the third quarter of 2023.
The consideration payable to the selling HyProMag shareholders
(the "Vendors") on completion of the Transaction will comprise
GBP1m (C$1.69m) in cash and the issue of 9,742,031 Mkango common
shares equivalent to GBP1m (C$1.69m) at a price equal to 10.2648
pence based on the volume weighted average price of a Mkango common
share on the AIM Market of the London Stock Exchange ("AIM") for
the 10 business days ended on the date prior to the date of the
share purchase agreement. In addition, up to a further GBP3m
(C$2.54m) may be payable to the Vendors in four tranches, either in
cash or in Mkango common shares (at Mkango's option), conditional
upon the achievement by HyProMag of certain production milestones
in the period to 30 June 2026. The shares issued on completion will
have a one-year lock up and the shares issued on milestones will
have a six-month lock up.
William Dawes, CEO of Mkango, commented: "Since acquiring our
initial interest in HyProMag in 2020, we have seen the company go
from strength to strength, de-risking and further scaling-up the
patented HPMS rare earth magnet recycling technology, building the
team and developing further industry partnerships, all against the
backdrop of growing interest in recycling and sustainable rare
earth supply chains. We look forward to working closely with the
HyProMag team as we continue to support the growth of the
business."
David Kennedy, Director of HyProMag, commented: " Building on
the legacy of innovation in rare earth permanent magnets and
hydrogen technologies pioneered by the late Prof. Rex Harris at the
University of Birmingham, we founded HyProMag in 2018 with Rex as a
founding shareholder. Our aim was to accelerate the
commercialisation of the HPMS process, and our collaboration with
Mkango has supported the company's growth and enabled the
participation in major collaborative projects on rare earth magnet
recycling. We look forward to the next phase of growth at Tyseley
Energy Park, scaling up the technology and showcasing rejuvenation
of Birmingham's industrial heritage, in parallel with the
international roll-out ."
Julian Treger, CEO of CoTec, commented: "This transaction is a
major step forward for Maginito as it seeks to move into production
over the short to medium term in the United Kingdom, Germany and
the United States. We look forward to supporting and working with
Mkango, Maginito and the HyProMag team to roll out this innovative
and highly energy efficient recycling technology, both as a
Maginito shareholder and as a partner in the United States."
Rare earth magnets play a key role in clean energy technologies
including electric vehicles and wind turbine generators, and they
are also a key component in electronic devices including mobile
phones, hard disk drives and loudspeakers. The development of
domestic sources of recycled rare earths in UK, Germany, United
States and other jurisdictions via HPMS is a significant
opportunity to fast-track the development of sustainable and
competitive recycled rare earth magnet production.
Mkango CEO, William Dawes, together with CoTec President and
CEO, Julian Treger, will be hosting a webinar tomorrow, Wednesday
17 May 2023, at 16:00 pm BST (8 AM PT) to discuss the acquisition
of HyProMag as well as an update on the collaboration between
Mkango Resources and CoTec. To register for the event, please
follow the link https://my.6ix.com/yI6r87uh .
Maginito
Maginito is focused on developing green technology opportunities
in the rare earths supply chain, encompassing neodymium (NdFeB)
magnet recycling as well as innovative rare earth alloy, magnet,
and separation technologies.
Following the Transaction, Maginito will hold a 100% interest in
HyProMag Limited focused on short loop rare earth magnet recycling
in the UK, a 90% direct and indirect interest (assuming conversion
of Maginito's recently announced convertible loan) in HyProMag
GmbH, a company focused on short loop rare earth magnet recycling
in Germany, and a 100% interest in Mkango Rare Earths UK Ltd
("Mkango UK"), a company focused on long loop rare earth magnet
recycling in the UK via a chemical route. A new US subsidiary, to
be jointly owned by Maginito and CoTec, is expected to be formed to
develop rare earth recycling opportunities in the United
States.
In March 2023, CoTec invested GBP1.5 million (C$2.54 million)
into Maginito, and Maginito and CoTec agreed to collaborate on the
commercialisation of downstream rare earth technologies in the
United States. Mkango UK was at the same time transferred to become
a subsidiary of Maginito. In connection with CoTec's investment,
John Singleton, Chief Operating Officer of CoTec, was appointed to
the Board of Maginito.
HyProMag
HyProMag was founded in 2018 by the late Professor Emeritus Rex
Harris, former Head of The Magnetic Materials Group ("MMG") within
the School of Metallurgy and Materials at the University of
Birmingham, Professor Allan Walton, current Head of the MMG, and
two Honorary Fellows, Dr John Speight and Mr David Kennedy, leading
world experts in the field of rare earth magnetic materials, alloys
and hydrogen technology, with significant industry experience. The
HPMS process for extracting and demagnetising NdFeB alloy powders
from magnets embedded in scrap and redundant equipment was
originally developed within the MMG and subsequently licenced to
HyProMag. The MMG has been active in the field of rare earth alloys
and processing of permanent magnets using hydrogen for over 40
years. Originated by Professor Emeritus Rex Harris, the hydrogen
decrepitation method, which is used to reduce NdFeB alloys to a
powder, is now ubiquitously employed in worldwide magnet
processing.
Under the terms of the Transaction, the founding Directors and
management of HyProMag will continue to provide support and work
closely with Mkango and Maginito to further scale-up and roll-out
the HPMS technology.
HyProMag is establishing short loop recycling facilities for
NdFeB magnets at Tyseley Energy Park in Birmingham, UK and other
locations using the patented HPMS process to provide a sustainable
solution for the supply of NdFeB magnets and alloys for a wide
range of markets including, for example, automotive and
electronics. Short loop magnet recycling is expected to have a
significant environmental benefit, requiring an estimated 88% less
energy versus primary mining to separation to metal alloy to magnet
production . The plant at Tyseley Energy Park is being developed
together with the UoB, with a minimum capacity of 100tpa NdFeB
(neodymium, iron, boron). This GBP4.3 million (C$7.27 million)
project is being funded by Driving the Electric Revolution, an
Industrial Strategy Challenge Fund challenge delivered by UK
Research and Innovation ("UKRI"). HyProMag is the primary
industrial user and operator of the plant. First production is
targeted for late 2023, which follows successful piloting at the
UoB in 2022 as featured on BBC Midlands News:
https://youtu.be/9P-dsNCffWw .
HyProMag's loss for the year ended 31 December 2022 was
GBP151,411 (C$155,855) as a result of R&D expenditures on its
recycling projects.
HyProMag GmbH
In November 2021, HyProMag established an 80%-owned subsidiary
in Germany, HyProMag GmbH, to roll out commercialisation of HPMS
technology into Germany and Europe. HyProMag GmbH is 20% owned (10%
following conversion of the HyProMag GmbH convertible loan) by
Professor Carlo Burkhardt of Pforzheim University, co-ordinator of
the EUR14m (C$20.58m) SusMagPro ( www.susmagpro.eu ) and EUR13m
(C$19.11m) REEsilience ( www.reesilience.eu ) EU funded recycling
projects, with approximately 40 partners across the European supply
chain.
HyProMag GmbH is developing a similar sized plant to that at
Tyseley Energy Park. Initial capacity is expected to be a minimum
of 100tpa NdFeB, comprising recycled rare earth sintered magnets
and alloys and will be the first in Germany using the patented HPMS
process, with first production targeted for 2024. Maginito has
entered into a convertible loan agreement (the "HyProMag GmbH
Convertible Loan") with HyProMag GmbH. Under the terms of the
HyProMag GmbH Convertible Loan, Maginito has granted HyProMag GmbH
a loan facility for EUR2.5 million (C$3.68 million) available to be
drawn down in accordance with an agreed investment plan and
convertible into a 50% equity interest in HyProMag GmbH.
This investment by Maginito will contribute to the matched
funding requirements to unlock the EUR3.7 million (C$5.44 million)
grants announced by Mkango on November 23, 2022, for development of
the production facility in Baden-Württemberg State.
Mkango UK
Mkango UK is establishing a pilot plant at Tyseley Energy Park
(the "Mkango UK Pilot Plant") to chemically process recycled HPMS
NdFeB powder and magnet swarf (i.e. the powder produced from
grinding and finishing magnets) from a range of scrap sources
including electronic waste, electric motors and wind turbines,
complementing the short loop magnet recycling routes being
developed in parallel by HyProMag. The GBP1.1 million (C$1.86
million) pilot plant programme is being developed as part of the
SCREAM Project ( https://scream-uk.com/ ), for which 70% of the
costs are being funded by UK Research and Innovation (UKRI) as part
of the Driving the Electric Revolution challenge.
About Mkango
Mkango's corporate strategy is to develop new sustainable
primary and secondary sources of neodymium, praseodymium,
dysprosium and terbium to supply accelerating demand from electric
vehicles, wind turbines and other clean technologies. This
integrated Mine, Refine, Recycle strategy differentiates Mkango
from its peers, uniquely positioning the Company in the rare earths
sector. Mkango is listed on the AIM and the TSX-V.
Mkango is developing its flagship Songwe Hill rare earths
project ("Songwe") in Malawi with a Definitive Feasibility Study
completed in July 2022 and an Environmental, Social and Health
Impact Assessment approved by the Government of Malawi in January
2023. Malawi is known as "The Warm Heart of Africa", a stable
democracy with existing road, rail and power infrastructure, and
new infrastructure developments underway.
In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading
chemical company and the second largest manufacturer of nitrogen
and compound fertilizers in the European Union, have agreed to work
together towards development of a rare earth Separation Plant at
Pulawy in Poland (the "Pulawy Separation Plant"). The Pulawy
Separation Plant will process the purified mixed rare earth
carbonate produced at Songwe Hill.
Through its ownership of Maginito ( www.maginito.com ), Mkango
is also developing green technology opportunities in the rare
earths supply chain, encompassing neodymium (NdFeB) magnet
recycling as well as innovative rare earth alloy, magnet, and
separation technologies.
Mkango also has an extensive exploration portfolio in Malawi,
including the Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt
project.
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is a publicly traded investment issuer listed on the TSX-V
under the ticker CTH, and the OTCQB under the ticker CTHCF. The
company is an ESG-focused company investing in innovative
technologies that have the potential to fundamentally change the
way metals and minerals can be extracted and processed for the
purpose of applying those technologies to undervalued operating
assets and recycling opportunities, in rare earths, low carbon iron
ore (green steel) and copper as the company seeks to transition
into a mid-tier mineral resource producer. CoTec is committed to
supporting the transition to a lower carbon future for the
extraction industry, a sector on the cusp of a green revolution as
it embraces technology and innovation.
For more information, please visit www.cotec.ca .
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within
the meaning of that term under applicable securities laws) with
respect to Mkango and CoTec. Generally, forward looking statements
can be identified by the use of words such as "plans", "expects" or
"is expected to", "scheduled", "estimates" "intends",
"anticipates", "believes", or variations of such words and phrases,
or statements that certain actions, events or results "can", "may",
"could", "would", "should", "might" or "will", occur or be
achieved, or the negative connotations thereof. Readers are
cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will
not occur, which may cause actual performance and results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, without
limiting the foregoing, the availability of (or delays in
obtaining) financing to develop Songwe Hill, the Tyseley Recycling
Plant, the HyProMag GmbH Recycling Plant, the Mkango UK Pilot
Plant, the Pulawy Separation Plant, governmental action and other
market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is exploring,
researching and developing, geological, technical and regulatory
matters relating to the development of Songwe Hill, the ability to
scale the HPMS and chemical recycling technologies to commercial
scale, competitors having greater financial capability and
effective competing technologies in the recycling and separation
business of Maginito and Mkango, availability of scrap supplies for
Maginito's recycling activities, government regulation (including
the impact of environmental and other regulations) on and the
economics in relation to recycling and the development of the
Tyseley Recycling Plant, the HyProMag GmbH Recycling Plant, the
Mkango UK Pilot Plant, the Pulawy Separation Plant and future
investments in the United States pursuant to the proposed
cooperation agreement between Maginito and CoTec, the outcome and
timing of the completion of the feasibility studies, cost overruns,
complexities in building and operating the plants, and the positive
results of feasibility studies on the various proposed aspects of
Mkango's, Maginito's and CoTec's activities. The forward-looking
statements contained in this news release are made as of the date
of this news release. Except as required by law, the Company and
CoTec disclaim any intention and assume no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable law. Additionally, the Company and CoTec undertake no
obligation to comment on the expectations of, or statements made
by, third parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Kasia Brzozowska
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
Bacchus Capital Advisers
Financial Adviser
Richard Allan
UK: +44 203 848 1642
UK: +44 7857 857 287
richard.allan@bacchuscapital.co.uk
Tavistock Communications
PR/IR Adviser
Jos Simson, Cath Drummond
UK: +44 (0) 20 7920 3150
mkango@tavistock.co.uk
For further information on CoTec, please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
braam.jonker@cotec.ca
Canada: +1 604 992-5600
The TSX Venture Exchange has neither approved nor disapproved
the contents of this press release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any equity or other securities of
the Company in the United States. The securities of the Company
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") and may not be offered
or sold within the United States to, or for the account or benefit
of, U.S. persons except in certain transactions exempt from the
registration requirements of the U.S. Securities Act.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQKZGMKKKFGFZM
(END) Dow Jones Newswires
May 16, 2023 02:00 ET (06:00 GMT)
Mkango Resources (LSE:MKA)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Mkango Resources (LSE:MKA)
Historical Stock Chart
Von Mai 2023 bis Mai 2024